Australian Wool Market Closes Down Before Recess
July 13, 2018
Week two marked the final selling week before the annual mid-year, three-week recess. The buying sentiment was best described as cautious following the significant losses experienced in the previous sale. This cautious approach resulted in a softer tone, which was evident from the outset.
Wool was discounted on all types and descriptions, across the entire merino spectrum. Prices generally fell by 10 to 30 Australian cents for the week. Lots possessing favorable additional measurement results, however, still attracted excellent support due to their minimal availability, and recorded minimal change for the series. Although some selected wools held up well, overall the market still headed further into negative territory.
The benchmark Eastern Market Indicator lost 13 cents to close at 1981 Australian cents. The EMI has now lost 75 cents in the previous two sales. Worth noting – despite the fact that the market lost ground for the week – is that a positive sentiment returned toward the end of the week. The northern region recorded a 3-cent increase on the final selling day and the southern region posted a minimal 3-cent loss.
The skirtings generally dropped by 10 to 20 Australian cents. Lots with vegetable matter greater than 4 percent were most affected. A limited offering of skirtings 19.5 micron and coarser – with less than 3.0 percent vegetable matter – managed small increases for the week.
The crossbred sector performed with mixed results as 28.0 micron fell by 20 to 40 Australian cents, 30.0 micron rose by 10 to 20 cents and all other microns were firm unchanged. A limited offering of cardings generally eased by 20 to 30 Australian cents.
Sales resume the week beginning Aug. 6.